My 26 year old daughter got into some credit problems when she was 22 years old and really racked up a bill…I guess that is a common thing with young adults who don’t manage their money & spending wisely and then end up doing some damage to their credit lines when they over spend.
My daughter has learned her lesson and for the past 4 years she has been working really hard to pay off her debt and to repair her credit. With that said, she now doesn’t want to be tempted to over-charge her cards again so she closed them and decided to open up a Green Dot Credit Card.
If you are not familiar with what they are I am going to tell you a little bit about them. These type of credit cards are prepaid cards that you deposit money on them before you can go out and charge with them. In other words, if you deposit $200 on the card when you go out and try to use the card you can only charge up to $200 on the card. In essence…they act like a debit card in that sense so they are accepted any where a Visa or Mastercard Debit Card are accepted.
I think these are perfect for teenagers and young adults who still need to learn how to manage their finances properly as it is better to teach them to spend what they have instead of spending what they don’t have and having to worry about how to pay for it later on down the road. There are some nominal fees associated with these type of cards so make sure you sit down and read the fine print. They can be purchased online or at various retail stores and you can make your deposits onto the cards various types of ways. In my daughter’s case…she prefers to put deposits onto her card online which cuts down on some of those fees.
These type of cards are great for people who like to keep their finacial information private, especially when traveling and you don’t know who to trust while in different areas or different countries. They are also great cards for teenagers and young adults as I have explained above.
I found a great web site online called CreditCards where you can get additional information about what prepaid cards are and which companies to trust when it comes to purchasing prepaid cards. No matter what you decide to do…make sure you do your research first and read all of the fine print before going down the prepaid credit card route.
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